UNION OF INDIA Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) this batch of appeals raises the question of correct interpretation of proviso (ii) of order dated 22nd may, 1984 issued by government of india, ministry of food and civil supplies in exercise of powers conferred by clause 5 of the sugarcane (control) Order, 1966. The learned single judge by the impugned judgment dated February 25, 1991 disposed of all the writ petitions by relying upon the previous decision of this court in Ganeshmal jain, s, and another v Union of India and another .

(2.) the facts giving rise to this litigation are required to be briefly stated to appreciate the grievance of the appellant. The respondents in all these appeals are recognised dealers under sugarcane (control) order and are wholesalers dealing in sugar and khandasari. Sugar being an essential commodity the production, prices, movement and distribution is required to be regularised in the interest of their availability at fair-price to the consumer. The government of India reviews the sugar policy from time to time and steps are taken under the Provisions of the Essential Commodities Act, 1955 by issuance of sugarcane (control) order. The government of India since the year 1967-68 prescribed the policy of partial control of sugar. The levy of sugar quota released each month for internal consumption is a fixed quantity. The release of non-levy sugar is subject to regulation under the Provisions of the sugarcane (control) Order, 1966. With a view to check hoarding the central government has been prescribing stock-holding limits in respect of sugar and khandasari for the licenced dealers. The government also has fixed the period within which these stocks received by the dealers has to be disposed of and this precaution is taken to check hoarding. The government has issued sugarcane (control) orders from time to time fixing the time limits of 10 days or 7 days as the period within which the stocks received by the dealers should be disposed of.

(3.) with this background it will be convenient to refer to the order dated may 22, 1984. The order is issued in exercise of powers conferred by clause 5 of the sugarcane (control) Order, 1966 in supersession of the order dated 29th april, 1982. The order prescribes that no recognised dealer shall keep in stock at any time vaccum pan sugar in excess of 250 quintals in cities and towns with a population of 1 lakh or more. The limit applies also for khandasari (open pan sugar). The proviso then sets out the following: